WINDHOEK, April 1 (Xinhua) -- China and South Africa were Namibia's top foreign direct investment (FDI) sources in 2024, accounting for a combined 53.1 percent of total FDI liabilities, according to the Bank of Namibia's latest annual report.

The mining and financial intermediation sectors received the most investment, with the mining sector holding 67.7 percent of total FDI liabilities, the central bank said in the report released on Monday.

However, the bank said, the share of Chinese and South African investments fell slightly as new players, including the Gulf Arab states, the United States, and France, increased their presence in oil and gas exploration and appraisal activities.

"The share of FDI from the Arab Gulf States, the United States of America, and France increased to 7.2 percent, 6.1 percent, and 4.9 percent, respectively, in 2024, largely due to oil and gas exploration and related appraisal activities in Namibia, which are attracting more investment," the report stated.

According to the report, Namibia's net FDI inflows dropped by 23.1 percent in 2024 to 37.1 billion Namibian dollars (about 2 billion U.S. dollars), down from 48.2 billion Namibian dollars in 2023.

The fall was mainly attributed to a one-time sale of foreign assets in the manufacturing sector in 2023, which made last year's numbers look lower by comparison, while the mining sector also took on fewer foreign loans, the report added.

"A marginal decline was also recorded in oil and gas exploration and appraisal FDI inflows in 2024, as some major exploration operators reduced appraisal drilling campaigns for further analysis before making final investment decisions," the report said.

The mining sector continued to dominate FDI, increasing its share by 2 percentage points to 67.7 percent in 2024. The financial sector followed at 16.7 percent, while the manufacturing as well as wholesale and retail trade sectors accounted for 7.0 percent and 3.5 percent, respectively.

Foreign investment in Namibia's transport sector also saw a notable rise, from 0.1 percent in 2023 to 1.1 percent in 2024, reflecting major foreign investments linked to the concession of the port of Walvis Bay, the report added. Enditem

Related

Go to Forum >>0 Comment(s)